EDMONTON, AB, March 6, 2026 /CNW/ - McCoy Global Inc. ("McCoy," "McCoy Global" or "the Corporation") (TSX: MCB) today announced its operational and financial results for the year and three months ended December 31, 2025.
Fourth Quarter Highlights:
-- Revenue increased 1% to $25.6 million, compared to $25.2 million in Q4
2024, driven by strong demand for recently commercialized smartProducts.
-- smartProduct revenue5 accounted for $14.1 million, or 55%, of total
revenue, an increase of $2.0 million or 16% from Q4 2024.
-- Net earnings of $6.1 million, a 44% increase from $4.3 million in 2024.
-- Adjusted EBITDA1 remained consistent with Q4 2024 at $6.5 million, or 25%
of revenue (Q4 2024 $6.5 million, 26% of revenue).
Annual Highlights:
-- Revenue increased 8% to $83.8 million, compared to $77.5 million in 2024,
driven by strong demand for smartProducts.
-- smartProduct revenue5 accounted for $43.6 million, or 52%, of total
revenue, an increase of $13.9 million from 2024.
-- Net earnings of $9.0 million, a 2% increase from $8.9 million in 2024.
-- Adjusted EBITDA1 of $16.8 million, or 20% of revenue, compared to $16.2
million, or 21% of revenue, in 2024.
-- Advanced its Technology Roadmap, and since January 1, 2025:
-- McCoy successfully concluded in-field trials and commercialized
its innovative smarTR$(TM)$ system for land and shelf applications
in the second quarter of 2025, which led to $11.0 million of
contract awards from our US field trial partners for system
hardware. In addition to the equipment award, the contract
included utilization-based software-as-a-service (SaaS) revenue
enabled by our integrated software platform for remote control,
automation, and data-driven operational intelligence. McCoy
completed deliveries for these in Q4 and recognized its first
SaaS--like subscription revenues for this technology in 2025.
Recent field deployments have validated the system's technical
performance, and have met or exceeded all technical objectives,
delivering targeted safety and efficiency outcomes. The smarTR(TM)
system integrates McCoy's proprietary hydraulic smart casing
running tool (smartCRT(TM)), connected flush mount spider
(smartFMS(TM)), and related tubular running accessories into a
first-to-market solution that significantly enhances safety and
efficiency, with the goal to significantly reduce TRS labor costs.
-- McCoy continued to advance the commercialization of
its smartCRT(TM) technology, delivering multiple hydraulic
smartCRT(TM) units to the Middle East and the US land market
throughout 2025. First introduced in Q4 2024, the hydraulic
smartCRT(TM) has successfully executed numerous operations,
demonstrating exceptional reliability and efficiency in demanding
field conditions. This patented solution offers a hydraulic
alternative to conventional mechanical casing running tools and is
designed to integrate seamlessly into McCoy's smarTR(TM) system.
By mitigating risks inherent in traditional mechanical CRT
technologies while providing actionable performance insights, it
represents a significant step forward in operational safety and
optimization. Following extensive rig trials, the smartCRT(TM)
received technical approval from a major NOC in a key market,
marking a critical milestone in its commercialization and
positioning it for inclusion in upcoming tenders. During the third
quarter, McCoy also successfully commercialized and delivered its
first external grip smartCRT(TM), designed for expanded casing
applications and broadening the scope of McCoy's smartProduct
portfolio beyond the capabilities of previous tools.
-- McCoy successfully commercialized and delivered its
500T smartFMS(TM), a versatile solution that supports both
drilling and casing operations while offering the enhanced load
capacity required for many international well profiles.
-- McCoy delivered a deep-water offshore integrated casing running
system destined for Latin America and completed commissioning in
Q4 2025. Delivering and commissioning this technology completes
the first step on a roadmap to a comprehensive smarTR(TM) system
tailored for offshore and deep-water markets. This integrated
deep-water system differs from our smarTR(TM) solution designed
for land and shelf casing operations that is centered around CRT
technology, as deep-water casing installation requires hydraulic
power tongs to meet technical specifications for offshore well
profiles. The Latin America contract award also marked the first
offshore commercial SaaS purchase commitment for McCoy's Virtual
Thread-Rep(TM) technology. McCoy's Virtual
Thread-Rep(TM) technology enables customers to remotely monitor
and control premium connection make-up. It also facilitates the
autonomous evaluation and confirmation of premium connection
make-up on location. In Q4 2025, McCoy received a $3.7 million
purchase commitment for integrated hydraulic power tong systems
intended for deep-water offshore operations in the Eastern
Hemisphere, with a portion delivered in 2025 and the remainder
scheduled for 2026.
"Throughout 2025, we continued to demonstrate meaningful progress against our Technology Roadmap, successfully commercializing multiple smartProduct offerings and delivering systems that are already generating strong technical results for our customers. The rapid growth of smartProduct revenue, combined with our first SaaS--like contributions, underscores the compelling value our technologies bring to improving safety, efficiency, and operational consistency," said Jim Rakiviech, President and CEO. "Recent geopolitical developments in the Middle East have introduced an additional layer of near--term uncertainty. With more than two--thirds of our year--end backlog destined for this region, ongoing shipping suspensions and restricted port access may delay certain deliveries and temporarily defer associated revenue and cash receipts. Importantly, underlying customer demand remains intact, but timing may create near--term pressure on operating cash flow and working capital. While the timing of certain NOC-driven tenders and the pace of technology adoption across other markets remains difficult to forecast, the milestones we achieved in 2025 reinforce our confidence that our technology strategy is the right one. We remain committed to disciplined execution as we expand our smartProduct portfolio and work closely with customers to advance adoption across global markets."
"In response to emerging logistics disruptions stemming from the Middle East conflict and the limited visibility on NOC tender timing, in the first quarter of 2026 we have taken decisive action to optimize our cost structure and preserve margins and liquidity against downside scenarios, while ensuring continued investment in the strategic initiatives most critical to our long-term growth," said Lindsay McGill, Vice President & CFO. "Our disciplined approach resulted in approximately US$1.9 million of annualized cost reductions, driven by reductions in force, tighter discretionary spending controls, and the deferral of non--essential capital expenditures. Additionally, we made the decision to preserve financial flexibility by pausing our quarterly dividend due to the recent conflict in the Middle East. At the same time, we protected our key technology development and customer support programs, enabling us to sustain momentum in smartProduct commercialization. This balanced approach ensures we remain agile, preserve liquidity, and maintain the financial flexibility required to support our customers and deliver on our strategic priorities."
Fourth Quarter Financial Highlights:
-- Total revenue of $25.6 million, compared with $25.2 million in 2024.
-- Net earnings of $6.1 million, compared to net earnings of $4.3 million in
2024.
-- Adjusted EBITDA1 of $6.5 million, or 25% of revenue, compared with $6.5
million, or 26% of revenue, in 2024.
-- Booked backlog2 of $25.8 million at December 31, 2025, a 10% increase
from the $23.5 million in the fourth quarter of 2024.
-- Book-to-bill ratio3 was 0.94 for the three months ended December 31,
2025, compared with 0.67 in the fourth quarter of 2024.
Annual Financial Highlights:
-- Total revenue of $83.8 million, an 8% increase from the $77.5 million
reported in 2024, driven by strong demand for recently commercialized
smartProducts.
-- Net earnings of $9.0 million, compared to net earnings of $8.9 million in
2024.
-- Adjusted EBITDA1 of $16.8 million, or 20% of revenue, compared with $16.2
million, or 21% of revenue, in 2024.
Financial Summary
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